proactive) concerns, “enhancing positive image” and “integrating environment into corporate strategy.” In the Vastag et al. (1996) study, the answers showed a clear trend: an overwhelming majority of the respondents thought that it is very important to emphasize the green nature of a product in the developed market economies (such as USA and EU-countries), somewhat less important in other foreign markets, and not very important in economies in transition (such as Hungary).
Peattie (1995) lists two fundamental mistakes that companies have tended to make when facing pressure from green interest groups: The first is to react negatively to environmentalist criticism by adopting a strategy from the ‘D’ list of Defend, Deny, Discredit, Disprove, Deflect. Such responses can be counter-productive, since, given conflicting stories from green groups and a company, the company is likely to finish second in the race for credibility.
According to Kamena’s (1991) study, 37% of consumers described environmental groups as a
“very good unbiased source of environmental information”, whilst only 5% regarded product manufactures to be the same. The second mistake is to regard interest groups as something that only exists ‘out there’ in the external environment. The millions of members of green groups not only exist in the marketing environment, some of them are very likely to exist inside the marketing department. This makes any attempt to create a false impression on eco-performance rather dangerous.
To summarise the discussion in the previous sections, it can be said that environmental marketing has been a popular topic in the marketing literature during the recent years.
However, only a few examples of green marketing have been dealing with marketing of forest products. A specific topical issue in the current forestry debate is timber certification.
Certification may be regarded as a one potential tool in marketing of forest products. However, instead of regarding certification as a separate issue in forest products marketing, it would be useful to look at it as one example of a functional level marketing tool in the context of integrated marketing management.
2 PURPOSE AND IMPLEMENTATION OF THE STUDY 2.1 Purpose of the Study
The purpose of the dissertation is to analyse the obvious need to integrate social values and environmental issues into marketing strategies and clarify its implementation. This will be done by developing a theoretical framework based on theories of environmental marketing. The theoretical model of environmental marketing planning applicable to the forest industry will be tested by using and analysing empirical data. The model of environmental marketing applied in this study is based on Juslin's (1992) integrated model of marketing planning, where marketing strategies, structures and functions are analysed concerning the integration of environmental issues into them. In this study, marketing planning and the market environment of Finnish, Swedish, German, British, and Western North American forest industries and their industrial customers are analysed through a comparing descriptive approach. The value of timber certification as a potential marketing tool of forest products is given special attention in the study.
One factor affecting companies’ environmental marketing planning is the expected changes in the macro environment (demand, supply) and the micro environment (competition, customer behaviour) regarding environmental concerns and demands. From developing a marketing theory perspective (explanatory approach), the logic of environmental marketing is analysed by studying hypothetical hierarchical relationships between business values, marketing strategies,
8
structures and functions. The principle assumption to be tested in this dissertation is that environmental marketing functions (e.g. advertising) obtain their objectives from marketing strategies which are based on the objectives of the business unit, in this case environmental business values.
The six separate studies of this dissertation will investigate and answer the following specific questions concerning 1) description of empirical phenomena, 2) comparing description of phenomena, and 3) explanation of phenomena based on hypothetical assumptions derived from theoretical constructs:
1) Descriptive research questions:
• What is the expected development of the macro and micro environments regarding environmental concerns and demands? (VI)
• What are the value-based dimensions of companies’ social responsibility? (V)
• How companies can be classified according to their social responsibility values? (V)
• Are environmental issues and societal demands incorporated into marketing planning, and what is the role of timber certification in marketing? (I, II, III, V, VI)
• How companies can be classified according to their environmental activity? (III, IV, VI)
• How can green advertising be described? (IV)
• To what degree do Finnish forest industry companies use green advertising? (IV) 2) Comparing descriptive research questions:
• What are the differences between the countries and industry sectors with regard to the emphasis on environmental/social issues in the marketing planning and market environment? (I, II, III, V, VI)
3) Explanatory research questions:
• What is the relationship between dimensions of social responsibility and environmental marketing? (V)
• What is the relationship between the expected development of the marketing environment and the level of greenness in marketing planning? (VI)
• Are the attitudes and needs towards timber certification related closer to the level of environmental activity, or to background factors, such as country or industry sector? (III)
• Do green advertisements reflect the company’s level of environmental activity? (IV)
2.2 Research Design of the Study
The research design of the study originates from the objectives of the study defined in the previous section. The study follows a positivist research tradition as a typical survey, based on cross-sectional data collected by personal interviews with a structured questionnaire. The research strategy can be described as descriptive-empirical research and the aim is to describe, compare and explain the phenomena under focus. The theoretical background for the study is constructed by combining elements from different theories concerning environmental marketing. Propositions (hypotheses) derived form the theoretical constructs and secondary material analysed bring a deductive nature to the research strategy. The outline of the study is presented in Figure 2.
9
Figure 2 Implementation of the Study
Referring to the numbered blocks in Figure 2, the steps in the implementation of the study are as follows:
1. Review of the theories concerning environmental marketing and the social and environmental responsibility of companies. Hierarchical relationships between values, strategies, structures and functions are clarified by using literature.
2. An empirical research, based on interviews in five countries, is implemented in order to examine companies’ environmental and social values, marketing strategies and their implementation. Role of timber certification and advertising as potential tools of marketing management is clarified. Also expected changes regarding environmental demands in the marketing environment are examined. Results are compared between background factors (countries and industry sectors).
3. Theoretical conclusions are made of what environmental marketing should be according to the hypothesised model of environmental marketing. A theoretical model of environmental marketing is generated and hypotheses regarding the relationships are formulated.
4. Implementation of environmental marketing of the empirical research is compared with the hypothetical value-strategy-structure-function -combinations. Hypotheses derived from theoretical conclusions are tested against empirical data. Conclusions regarding the need to develop industries’ environmental marketing planning are made.
EMPIRICAL OBSERVATIONS:
DESCRIPTION AND COMPARISON - Expected changes in macro and micro environment
- Environmental business values among companies
- Integration of environmental issues into marketing strategies
- Implementation of environmental marketing
- Timber certification and advertising as potential marketing tools
- Comparison between countries and industry sectors
2 INGREDIENTS IN THE THEORY OF
ENVIRONMENTAL MARKETING ENVIRONMENTAL MARKETING “SHOULD BE”
3
TESTING THE HYPOTHESES (explanatory approach) - Development needs among industries
4
FINAL RESULTS AND UTILISATION - Development of the theory of green marketing - Recommendations and guidelines for planning and implementation of green marketing among industries
5 Values
Strategies Structures
Functions
10
5. Final results and utilisation of the study: Development of theory and implementation of environmental marketing. The results can be used in developing strategic marketing of (forest) industry companies.